Galileo Signs AA To Content-For-Discount Program

Galileo International today announced American Airlines has joined its Preferred Fares Select program, becoming the last of the six-largest U.S. carriers to agree on a three-year, content-for-discount program with the global distribution services company. Galileo, a subsidiary of Cendant Corp., yesterday said American partner British Airways also had joined Preferred Fares Select.

Participating airlines provide to Galileo complete access to all published fares, including those fares previously available only through Internet channels, in exchange for firm discounts on booking fees. The expanded inventory immediately is available to U.S. point-of-sale travel agencies and those corporate customers that have existing Galileo agreements or use Cendant's Travelport corporate booking tool.

"We commend Galileo's efforts to reduce distribution costs, while improving access to fares for customers through fundamental changes to the distribution model," said American vice president and general sales manager David Cush.

A similar program from Sabre, Direct Connect Availability Three-Year Option, has attracted 24 airlines, including each of the U.S. Big Six and British Airways. Worldspan also has dangled booking discounts to carriers willing to provide complete inventory for three years. Thus far, Delta, Northwest and United have signed on.

Though these programs offer to airlines immediate relief for distribution costs, not all carriers are interested. Some executives suggest the GDSs merely are offering quick fixes to a larger problem. "This situation with the GDSs is analogous to what airlines did with business passenger prices," said America West Airlines CEO Doug Parker in a BTN interview last month. "We let them get so far ahead that eventually companies figured out ways to get around the fences. Direct connect is our similar response to what the GDSs were doing, and we'll figure out ways to make it work. We have no interest in any GDS."